The cash money movement is performed by means of different types of money: banknotes, metal coins, other credit instruments (bills of exchange, cheques, credit cards). The emission of cash money is performed by the Central (as a rule State) Bank.

As was mentioned before in Kazakhstan it is the National Bank which issues cash money and withdraws it in case of its worn-out state and changes money onto the new samples of notes and coins either. There are the following normative legal documents which take a control of a cash money circulation in our country:

The board of directors of the National Bank of the Republic of Kazakhstan decision dated from March 3, 2001 № 58 «The regulation of cash and safe deposit transactions conducting in regard to an encashment of banknotes, coins and real values in the second-tier banks and enterprises which perform the separate types of bank transactions of the Republic of Kazakhstan».

The board of directors of the National Bank of the Republic of Kazakhstan decision dated from October 10, 2002 № 401 «The rule of licensing and regulation of activities of an encashment of banknotes, coins and real values of the juridical entities excluding banks».

The board of directors of the National Bank of the Republic of Kazakhstan decision dated from May 28, 2007 № 56 «About the confirmation of an instruction on security and rooms arrangements of the second-tier banks».

The division of cash money onto paper and metal is determined by practical considerations of the money circulation convenience. For example in USA about 10 % of money is considered reasonable to keep in small coins. Consequently bypassing a simplification of settlement mechanism and a tendency to electronic money development the commodity production cannot avoid the cash money usage.

It keeps meaning:

– for disadvantaged population;

– in the conditions of crisis when a quest of cash money increases;

– for an illegal economic activity, evasion of property taxes, because cheques, credit cards, transactions are used by judicial authorities in evidence of different offenses.

Nowadays a retail trading in Kazakhstan basically consists of cash-in-hand flow. The majority of population is not served in banks and paid in cash. The clients who have banking accounts prefer to withdraw cash and use it for all their expenses.

For tax authorities it is almost impossible to trace and control the taxpayers revenues on the markets with cash-in-hand flow domination. The main part of cash money is spent on small purchases. Just according to these small payments on retail trading market the different types of production and import supporters can distribute a considerable volume of an unaccounted goods and the State at that faces a problem of tax collection.

Many people nowadays work without an appropriate registration and as a salary is paid in cash it is quite difficult to collect the taxes between an employer and an employee. Today the state doesn’t have any mechanisms allowing to register a real volume of consumption of the population and estimate a business situation in the sphere of indirect taxation.

The money owner needs a transparency and is forced to count constantly the available sums of money. Thus he prefers to keep it in a wallet. If he could see the rest of sum every time he wants and his money in some manner would secured from inflation thus surely he wouldn’t refuse to keep money in bank and to have an access to it by means of payment cards usage.